According to the law firm press release, the lawsuit alleges throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) since 2014 Taro Pharmaceutical has colluded with other pharmaceutical companies to keep the price of generic products artificially high; (2) the foregoing conduct violated federal antitrust laws; (3) in turn, Taro Pharmaceutical’s revenues during the Class Period were the result of illegal conduct; and (4) as a result, Taro Pharmaceutical’s public statements were materially false and misleading at all relevant times. On September 9, 2016, Taro Pharmaceutical revealed that its subsidiary and two senior officers received grand jury subpoenas from the United States Department of Justice, Antitrust Division, seeking documents regarding the sale of generic pharmaceutical products. On this news, shares of Taro Pharmaceutical fell $4.94 per share or almost 4% to close at $119.42 per share on September 23, 2016. On October 17, 2016, NECA-IBEW Welfare Trust Fund filed an antitrust class action lawsuit against Taro Pharmaceutical and several other pharmaceutical companies alleging that they engaged in the price-fixing of Clobetasol since 2014 in violation of the U.S. antitrust laws.
On January 23, 2017, the Court appointed Lead Plaintiffs and Counsel. Lead Plaintiff filed an amended Complaint on May 22, 2017. A corrected version of this Complaint was filed on June 19. Defendants filed a Motion to Dismiss the Complaint on October 11. On September 24, 2018, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.